Home reversion plans

With a home reversion plan you sell part or all of your home to a reversion plan company in exchange for a tax-free cash lump sum and a guaranteed lifetime lease with no monthly repayments to meet.

You stay in your home rent free for as long as you choose and are able to guarantee an inheritance to your beneficiaries. Both you and the reversion scheme company share in any increase in your property's value, providing you have not exchanged 100% of its value.

Advantages of a home reversion plan

• You are able to guarantee an inheritance
• There are no monthly repayments to make
• You benefit from any increase in value of the percentage of the property that you still own
• Reversion plans may be available to those aged 55+ and you can typically raise more money from your home at a younger age with a reversion plan than a lifetime mortgage would allow
• The older you are, the more money you will be able to release with a reversion plan
• Depending on what percentage of your home you originally sold you may be able to sell additional proportions at the providers discretion

Disadvantages of a home reversion plan

• Typically, you do not receive the full market value of the share of the property you sell because the reversion plan company will give you the absolute right to live in it rent free for the rest of your life, and will not get their money back for a number of years 
• The reversion plan company owns a share of your home and will also benefit from any increase in value
• Reversion plans cann be reversed however you would need to pay the full market value for the proportion you wish to purchase back
• If you release more than £250,000 from your home you may need to pay stamp duty.